– 5/1 ARM – the rate is fixed for a period of 5 years after which in the 6th year the loan becomes an adjustable rate mortgage (ARM). The adjustable rate is either tied to the 1-year treasury index or to the one-year London Interbank Offered Rate ("LIBOR"), and is added to a pre-determined margin (usually between 2.25-3.0%) to arrive at your.
Mortgage Rates Jump to 7-Year High – 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.97% with an average 0.3 point, up from last week when it averaged 3.92%. A year ago at this time, the 5-year ARM averaged 3.20%.
Adjustable-Rate Mortgage Loan (ARM) | U.S. Bank – An adjustable-rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based upon a pre-determined index. The ARM loan may include an initial fixed-rate period that is typically 3 to 10 years.